Why Is Operational Excellence Essential for 2026 Expansion?

The sector also faced broader macro headwinds, consisting of a more mindful policy background in China and global risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the most part, particularly those connected to carbon and high-growth technology, as assessment pressures and worldwide rate characteristics weighed on efficiency.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance instead of broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items attracting new capital. This shows that investors were targeting specific exposures, while reducing or rotating out of others.

Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have occurred in the secondary market, making it possible for investors to adjust positions without substantial primary creations or redemptions. While recent geopolitical events have led to more monetary pressure on GCC countries, the region stays resilient and well capitalized to deal with the circumstance.

In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on worldwide luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment and rates during the quarter, it has actually driven more volume and interest in regional possessions.

How Is Business Excellence Crucial for 2026 Expansion?

Regardless of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable development momentum in current years. While conflicts in the larger area and international economic unpredictability remain a structural constraint, GCC countries have up until now restricted their impact on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) tasks global development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.

Driving Strategic Excellence in the Middle East

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this trend. Policy steps focused on bring in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a helpful role in 2026.

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) projects international growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Utilize Market Research for 2026 Growth

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as governments expand financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector investment and reform stay main to sustaining this trend. Policy steps targeted at drawing in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play an encouraging role in 2026.